shareholdersunite.com

Opportunities in smallcaps

shareholdersunite.com header image 2

A bullish call on TSL from a renowned analyst

April 11th, 2008 · No Comments

Cowen, one of the solar sector’s star analysts, has increased it’s earnings guidance for TSL 2008 from $3.64 to $4.05 and the stock price is off to the races this morning.

No wonder, earnings of $4+ for full year 2008 means that TSL’s 2008 p/e is less than 9, while it’s business (both top and bottom line growth) is growing by more than 100%.  We’ve always argued that this is the cheapest solar around, there seem to be plenty of people in agreement…

One has to have a subscription to read the whole Cowan report, but surfing a little to the message boards, one can usually get other interesting bits of it, for instance, here, and here

Apparently, Cowen also raised revenue to $750M (vs. prior $710M), based on shipments of 195MW (in line with 95% coverage of 200-210MW target). Since 15% of poly is covered by the new contract, they boosted gross margin by 50 b.p., to 23.8% (vs. St. 23.1%).

And they see 50%+ upside vs. the market in 12 months and reiterates Outperform.

This last call seems pretty tame to me, to be honest. I repeat, TSL is a business growing at triple digits and it has a 2008 p/e of 9.

I think the issue of whether we would break the 50 day moving average downwards has been settled at least for a while 🙂

Tags: TSL